Shepherd's Grain may seek as many as 25 new growers

By MATTHEW WEAVER

Capital Press

Shepherd's Grain, a sustainable agriculture wheat alliance, is developing a plan to market barley to Beef Northwest as a feed for its feedlot operation in Boardman, Ore.

Shepherd's Grain hopes to generate roughly 20,000 tons of two-row feed barley, co-founder Karl Kupers said.

"We put this project together to create opportunities for those farmers to diversify, but based on marketplace demand and not necessarily government-directed programs," Kupers said.

Shepherd's Grain has a base of 33 producers. Kupers said the alliance pledges to its producers it will not reach out to new producers until demand exceeds supply.

"That's where we're at with this barley program," he said, noting he hopes to bring on at least 20 to 25 new producers.

Ron Rowan, Beef Northwest's director of customer development and grain procurement, said the company would use the barley from the fall of 2011 through 2012.

"Shepherd's Grain is a sustainability model for producers," Rowan said. "It's a green way to produce grain."

Beef Northwest's Country Natural Beef program has similar, environmentally sound business methods.

Beef Northwest hopes to increase barley production in the Pacific Northwest.

"We like barley as a feed grain and energy source for our cattle," Rowan said. "This is a way we can support the local production of grain in the Northwest in an environmentally friendly way."

The Boardman operation generally has 40,000 cattle. Rowan said the barley pilot program may also serve a neighboring dairy of 25,000 cows.

Mary Palmer Sullivan, Washington Grain Commission program director, said the pilot program offers growers to get a contracted price for feed barley.

"It will provide a stable, guaranteed price and something barley growers can count on," she said. "This is probably the only thing outside of malting barley contracts barley growers have had an opportunity to take advantage of for a long time."

Barley prices are on the rise due to low world supply and low U.S. production. Sullivan said it remains to be seen whether the contract price guarantee will be the best when farmers move to sell their 2011 crop.

The price increase conceivably could help increase declining barley acreage, Sullivan said, but growers are still experiencing more competitive prices for their wheat crop.

Cattle feeders need a steady supply year-round and little variability for barley to be a good option, Sullivan said.

"Every little bit helps," she said. "There's a lot of possibilities out there and maybe it will be the beginning of a great trend."

Online

Shepherd's Grain: www.shepherdsgrain.com

Beef Northwest: www.beefnw.com

Washington Grain Commission: www.washingtongrainalliance.com